Iran May Halt Crude Supplies to India

Iran issued a new warning that it will halt supplies of crude to India unless the issue of billions of dollars in overdue payments is resolved.

Ramin Mehmanparast, the IRI's foreign ministry spokesman told that if the Iranian side feels it cannot receive the money for its exported oil under desirable conditions, it will reconsider its crude exports to India.

India is Iran's second largest client after China and absorbs about 20 percent of its crude exports, but New Delhi has been struggling for more than six months to pay Tehran due to international banking sanctions imposed on the Islamic republic.

In early July, Iran had seriously warned Indian refineries of the possibility of a halt in oil exports because of overdue payments.

The annual trade between India and Iran stands at an estimated $12 billion, with India purchasing some 400,000 barrels of Iranian crude per day.